Newcastle owners PIF have clear plan as £77m off-pitch deal struck

It is an established fact that the Saudi Public Investment Fund’s ambitions at Newcastle United and beyond are vast in their scale and scope.

PIF recently revealed plans for a number of new stadia ahead of the 2034 World Cup, which Saudi Arabia are running unopposed to host.

The £305m takeover of Newcastle announced the sovereign wealth fund as one of the biggest and most influential players in the geopolitical economy of sport.

But unlike on Tyneside, PIF are not shackled by restrictive Profit and Sustainability Rules in their homeland, where billions of petrodollars have been spent on signing superstars en masse.

The Saudi Pro League has reduced spending somewhat this summer compared to the level of extravagance of 2023 that would have made Jay Gatsby blush.

That is partly due to something of an economic downturn in the Kingdom.

However, many analysts argue that the domestic football product is still higher on PIF’s list of priorities than its overseas counterpart.

That might explain why, in the words of one finance expert, PIF have ‘bailed out’ Newcastle’s direct rivals in the Premier League by paying top dollar for otherwise difficult-to-sell players.

And the latest news from America may signal something fresh about PIF’s plans on the global stage.

• READ MORE NEWCASTLE UNITED NEWS: Newcastle could now bid for attacker Manchester City sold in 2022

Newcastle owners PIF agree Concacaf deal

Ahead of the World Cup in 2034, Saudi have been striking deals not just in individual sports teams or groups but also institutions.

As reported by SportsPro earlier this month, for example, they embarked on a partnership with Concacaf.

That deal is believed to be worth around £77m annually, including the value of a new agreement with Saudi Arabia’s flag carrier Riyadh Air.

The arrangement sees PIF take the sponsorship rights for North America, Central America and the Caribbean, including for the Concacaf Gold Cup.

Newcastle visited East Asia for pre-season this summer but were one of the participants in the inaugural Premier League Summer Series in the United States last term.

Study after study has found that there is millions in untapped commercial income available for clubs like Newcastle in America, where fandom is more fluid than in Europe.

They also have 38 supporter clubs in the country.

And for a club desperate to increase commercial income in order to unlock the near limitless riches of their owners, they will surely be hoping to piggyback in some way on PIF’s expanding influence in the US.

How can Newcastle benefit from PIF’s expanding football empire?

Technically, Newcastle are not part of a multi-club network.

Unlike the Red Bull system or Man City’s City Football Group, there is no specific institution that is joining up the dots between Newcastle and other PIF-owned clubs.

They did sell Allan Saint-Maximin to Saudi Pro League side Al Ahlit last year, but they are hardly alone in having received cash from that league’s staggering recruitment drive.

However, it has been reported that Newcastle are looking to lead a multi-club network, with French side Red Star and Belgian outfit Standard Liege among the clubs looked at.

That would allow them to pool resources – as well as certain costs – and provide recruitment benefits in a post-Brexit environment, wherein they cannot sign under-18 talent from Europe.